A recent article in www.aarp.com regarding baby boomers and the move to an even earlier retirement brought many questions. Why?
Among other findings:
- 86 percent collect Social Security; 43 percent took benefits earlier than they had planned.
- 4 percent are self-employed.
- 14 percent are working part time or seasonally.
- 8 percent owe more on their house than it’s worth.
To work or not to work is the question. Many baby boomers have decided that living on less is more important than continuing to accumulate “things.” Time has become far more important a commodity. Time for fun, time for church, time for family.
Others claim health issues or the loss of a viable job. Concerns or nursing home expenses and having enough money later in life are still a major concern. Many retiring baby boomers are turning to “outsourcing” their retirement funds to an insurance company and using an annuity to guarantee income for their whole lives.
Many retirees are forced to rely on social security and the basis for their retirement income. A recent study also showed the median income for a person age 65 averaged $27,707.
While many people dream about moving someplace warmer and more interesting, most people retire and stay put. Nearly 83% percent of recent retirees chose to stay close to home rather than venture to another arena. Being close to health care, hospitals and family were key decisions for their choices.
The demand for a safe and secure retirement income has become paramount for those retired or considering retirement. While numerous options exist such as stocks, bonds and traditional banking, many are considering annuities as their retirement vehicle.
Annuities are not for everyone and for every situation but for those who need a solid foundation; an annuity can provide the desired safety.